Aerospace & Defense Portfolio, Series 26
As the name implies, the aerospace and defense industry serves two main markets:
Largely comprised of companies involved in the production, sale, and service of commercial aircraft. Increases in passenger travel demand, especially from countries experiencing
continued wealth creation in the Middle East and the Asia-Pacific region, as well as replacing outdated aircraft with next generation, fuel-efficient aircraft is expected to drive growth in the
commercial aerospace sector. The worldwide commercial passenger and cargo aircraft fleet as well as the annual number of passengers are anticipated to double over the next two decades.1
Dependent on a nation's need for military weapons and systems designed to operate on land, sea, and in the air. The United States military is unquestionably the dominant force in the
world. Defense spending has been increasing in several areas of the globe, as security threats continue to emerge that pose risk to a nation's safety.2
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
| Not FDIC Insured Not Bank Guaranteed May Lose Value
You should carefully consider the portfolio's investment objectives,
risks, and charges and expenses before investing. Contact your financial advisor
or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should
be made with an understanding of the risks involved with owning common stocks, such as an
economic recession and the possible deterioration of either the financial condition of the issuers
of the equity securities or the general condition of the stock market.
You should be aware that an investment that is concentrated in stocks in the industrials sector
involves additional risks, including limited diversification. The companies engaged in the
industrials sector are subject to certain risks, including a deterioration in the general state of the
economy, intense competition, domestic and international politics, excess capacity and changing
The companies involved in the aerospace and defense industries are subject to fierce competition,
consolidation, adverse political and government developments, substantial research and
development costs, limited numbers of potential customers and excess capacity and spending
trends. Their products and services may be subject to rapid obsolescence.
An investment in foreign equities should be made with an understanding of the additional risks
involved with foreign issuers, such as currency fluctuations, political risk, withholding, the lack of
adequate financial information, and exchange control restrictions impacting foreign issuers.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional
risks, as the share prices of small-cap companies and certain mid-cap companies are often more
volatile than those of larger companies due to several factors, including limited trading volumes,
products, financial resources, management inexperience and less publicly available information.
The value of the securities held by the trust may be subject to steep declines or increased volatility
due to changes in performance or perception of the issuers.
As the use of Internet technology has become more prevalent in the course of business, the trust
has become more susceptible to potential operational risks through breaches in cyber security.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until
maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.